Europe And The United States Market Weakness, Guan Enterprises "Technology War" Policy

The Canton Fair entered the third stage of textile and clothing, footwear and Foodstuffs Import exhibition area yesterday.

The Canton Fair has always been called "the"

It is reported that the Canton Fair was opened on October 15th at Pazhou Exhibition Hall in Guangzhou, and a total of 181 enterprises in Dongguan participated.

Reporters learned from the city's foreign investment promotion center, exhibitors and the Municipal Foreign Trade and Economic Cooperation Bureau that, due to the continuing downturn in the consumption market in Europe and America, the orders of traditional manufacturing enterprises in Dongguan at this Canton Fair were affected, while products with technology content and independent brand were favored. Many enterprises increased their prices from "price war" to "technology war".

General situation

Debt crisis affects Europe and America

Large growth in orders in Asia and Africa

According to the statistics released by the official website of the Canton Fair, as of October 27th, the total number of purchasers of the Canton Fair was 168280, representing an increase of 2.18% over the same period last year. Buyers were mostly in the Asian market, followed by buyers from Europe.

For example, the two phase of light industrial products, due to the current weakening of the European and American economies, has declined in Europe and the United States compared with the previous one, which has declined by 6.1% to Europe and 7.4% to the US.

Exports to Asian and African countries and regions increased by 16.3% and 10.2% respectively.

The head of the city's foreign investment promotion center also said that according to the previous two phases, the order of emerging market and traditional developed countries is just showing the trend of this change.

Western Europe, southern Europe and North America are suffering from domestic consumption.

With debt crisis and other factors, orders fell, while orders for emerging markets such as Russia, Eastern Europe and some former CIS countries increased.

The growth and decline of the market will directly affect the survival of enterprises.

The person in charge said that the 191 enterprises in Dongguan were relatively unitary, especially those in the European market alone.

In this regard, Dongguan EAST chairman assistant Mr. Zhan also agreed, he said, North America and Europe for this session of Canton Fair EAST orders have a greater impact, but orders from the Middle East, Africa, South America, Russia, Australia and other places "substantial growth", can make up for the loss from North America and Europe.

Hot products with independent property rights increased by 30%

City Foreign Investment Promotion Center responsible person also said that according to the current two sessions of the Canton Fair, there is a very prominent feature: relatively unique products with independent property rights and technology content sales are very good.

For example, he said, for example, in the first phase of EAST, orders for this year increased by 30%. "This is because its products are competitive in the same industry, high technology content and reputation."

In this regard, Dongguan EAST chairman assistant Mr. Zhan told reporters that in the past 1 years, the 2 Canton Fair, EAST's site orders about 5 million ~800 million, but it is estimated that this Canton Fair can break through this figure, of which short-term orders continue to grow.

He also said that there are mainly four types of private brand products including UPS power, solar photovoltaic, communication power and economical power. The biggest contribution to the growth of orders is solar energy products.

Besides, most of the products have been improved by technology, and their performance is better, so the added value is higher.

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"In the past two phases, I understand that half of the enterprises have a flat price compared with last autumn's fair.

Some of the total profits remain unchanged, but the unit price is about 5%~10%.

The person in charge said that because of the increase in domestic production costs, many enterprises have realized that they can no longer win by "price war" and turn to improve the technology content and added value of products. "Maybe the amount of orders is not as large as before, but the overall profit is unchanged."

In addition, the official also mentioned that there were fewer than 10 ceramic enterprises exhibiting in Dongguan at this Canton Fair. Although most of them had their own brands, the orders on this Canton Fair were greatly affected by the anti-dumping duties of South Korea, Argentina, Peru, the European Union and the direct increase of tariffs in Brazil.

Cold traditional manufacturing orders are not optimistic.

Enterprises participating in the Canton Fair in Dongguan area are responsible for coordinating management and organization of Dongguan foreign investment promotion center, which is directly under the Municipal Bureau of foreign trade and economic cooperation.

The responsible person of the promotion center has been waiting in the exhibition area since the opening day of the Canton Fair. Yesterday he told reporters that the Dongguan enterprises in the exhibition were mainly production-oriented enterprises, with 148 enterprises and 33 foreign trade companies.

Among the 181 enterprises, 10 enterprises have a total of 42 brand booths, including EAST, Zhong Ling, Saint ya, waltay, Qin Shang, Jian long, Gao Li, Xiao Ling Tong, Jin Fuji and Jintai.

Reporters learned from the Municipal Foreign Trade and Economic Cooperation Bureau, statistics show that last autumn's Canton Fair, the 108th Canton Fair, Dongguan organized a total of 176 enterprises to participate in the intention to clinch a deal of $416 million, an increase of 8% over the same period last year.

It is reported that at present, Europe and the United States are experiencing debt crisis and global economic slowdown. Insiders are worried about the growth of Dongguan's exports in the fourth quarter. The city's foreign investment promotion center is responsible for the situation. "According to the previous two phases, the spot signing is roughly the same as last year's base.

But it depends on the third stage, because the exhibitors in Dongguan are fairly evenly distributed in the 3 issue.

The third phase is just beginning, and the situation is uncertain. "

However, the responsible person also said that because the current global economic downturn in Europe, the United States consumption did not go up, and the most urgent need for reconstruction in Japan is not clothing and shoes, so for the third phase of Canton Fair textile and apparel, footwear enterprises, "the situation is not very optimistic."

Chen Yaohua, President of the textile and garment industry in Dongguan, believes that global buyers can carry out price comparisons through many channels in the world. At present, although the price of cotton yarn has dropped, the cost of labor is much higher than that of Southeast Asia and Brazil. In terms of price, Dongguan and even the continent's clothing manufacturing industry no longer has the price advantage.